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November 28, 2012  Wed 10:44 AM CT

TLT: SEE CHART GET CHAIN FIND STRATEGIES
A trader is adjusting a huge position in the TLT Treasury exchange-traded fund as it tries to rebound.

The iShares 20+ Year Treasury Bond Fund is up 0.26 percent to $125.61. The fund, which was at an all-time high of $132.22 in late July, bounced off support at $118 in mid-September.

optionMONSTER's systems detected the sale of 22,708 January 124 puts for $1.96, far above the previous open interest of 1,671 contracts and therefore a new position. Seconds later, a block of 11,354 March 124 calls was sold for $4.15 in volume that was less than the open interest of 14,439 at the start of the day.
 
So it appears that the trader is unwinding a January long call position that is now in the money while selling nearer-term puts in a more neutral stance that can profit if the TLT is anywhere above $124 at expiration. (See our Education section)
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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